Reddit (RDDT) closed at $185.69 on November 18, 2025, down 0.99% as the market reassesses the company's valuation despite impressive fundamentals. The company reported a 74% jump in advertising revenue over the past year, driven by new AI features like Reddit Answers and search upgrades, with analysts setting a fair value of $240.27. However, the stock's P/E ratio of 103.30x far exceeds the industry average of 16.6x and peer average of 33x, suggesting the market has priced in substantial future growth with limited margin for error. Additionally, CEO Steve Huffman sold $3.5 million in stock on November 14, 2025, which may have contributed to recent selling pressure.